DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 509 Original 2016 Regular Session Gregory Miller
Abstract: Provides for changes to the Budget Stabilization Fund and allocations of mineral
revenues.
Present constitution establishes the Budget Stabilization Fund and provides for various deposits into
the fund including 25% of any nonrecurring revenues and mineral revenues collected by the state
over a base amount of $750 million. Further authorizes the legislature to increase the base amount
every 10 years in law. Increases provided for in law in 2004 and 2015 have increased the base
amount to $950 million. Proposed constitutional amendment decreases the base amount used to
determine the deposits into the fund from $950 million to $700 million and deletes the authority for
the legislature to increase the base amount over which mineral revenues would be deposited into the
fund.
Present constitution prohibits the appropriation or deposit of any money into the fund if the deposit
would cause the balance of the fund to be more than 4% of the total state revenue receipts for the
previous year. Proposed constitutional amendment increases the cap for deposits or appropriations
into the fund from 4% of the total state revenue for the previous year to the following:
(1) 6% beginning in Fiscal Year 2018-2019.
(2)10% beginning in Fiscal Year 2019-2020, and for each fiscal year after.
Proposed constitutional amendment further provides that total state revenue receipts shall not include
money received from FEMA or other sources providing disaster relief assistance.
Proposed constitutional amendment requires that except pursuant to a specific appropriation by the
legislature or deposit of nonrecurring revenues, no appropriation or deposit will be made into the
fund in a year in which the fund is used. Further requires that no appropriation or deposit will be
made into the fund in the year following the year when the fund was used.
Proposed constitutional amendment provides that mineral revenues that would otherwise be
deposited into the fund, but can not because the fund has reached its cap, be appropriated against the
unfunded accrued liability of the public retirement systems.
Provides for submission of the proposed amendment to the voters at the statewide election to be held
Nov. 8, 2016.
Effective July 1, 2017. (Amends Art. VII, §10.3(A)(2) and (C)(4); Adds Art. VII, §10.3(C)(5) and (D))